Results 1 to 10 of about 87,873 (46)
Artificial Intelligence, Algorithmic Pricing, and Collusion
The American Economic Review, 2020 Increasingly, algorithms are supplanting human decision-makers in pricing goods and services. To analyze the possible consequences, we study experimentally the behavior of algorithms powered by Artificial Intelligence (Q-learning) in a workhorse ...
Emilio Calvano +3 more
semanticscholar +1 more source
Second-Degree Price Discrimination by a Two-Sided Monopoly Platform
American Economic Journal: Microeconomics, 2022 We study second-degree price discrimination by a two-sided monopoly platform. The incentive constraints of the agents on the value creation side may be in conflict with internalizing externalities on the value capture side, which may render pooling ...
Doh-Shin Jeon +2 more
semanticscholar +1 more source
Smart Contracts and the Coase Conjecture
The American Economic Review, 2023 This paper reconsiders the problem of a durable-good monopolist who cannot make intertemporal commitments. The buyer’s valuation is binary and his private information.
T. Brzustowski +2 more
semanticscholar +1 more source
A Leverage Theory of Tying in Two-Sided Markets with Nonnegative Price Constraints
American Economic Journal: Microeconomics, 2021 Motivated by recent antitrust cases in markets with zero-pricing, we develop a leverage theory of tying in two-sided markets. In the presence of the nonnegative price constraint, the Chicago school critique of tie-ins fails to hold.
Jay Pil Choi, Doh-Shin Jeon
semanticscholar +1 more source
Optimal Nonlinear Pricing with Data-Sensitive Consumers
American Economic Journal: Microeconomics, 2023 We study monopolistic screening when some consumers are data sensitive and incur a privacy cost if their purchase reveals information to the monopolist. The monopolist discriminates between data-sensitive and classical consumers using privacy mechanisms ...
Daniel Krähmer, Roland Strausz
semanticscholar +1 more source
Does Entry Remedy Collusion? Evidence from the Generic Prescription Drug Cartel
Social Science Research Network, 2022 Entry represents a fundamental threat to cartels. We study the extent and effect of this behavior in the largest price-fixing case in US history, which involves generic drug manufacturing.
Amanda Starc, Thomas G. Wollmann
semanticscholar +1 more source
Learning to Coordinate: A Study in Retail Gasoline
The American Economic Review, 2019 This paper studies equilibrium selection in the retail gasoline industry. We exploit a unique dataset that contains the universe of station-level prices for an urban market for 15 years, and that encompasses a coordinated equilibrium transition mid ...
David P. Byrne, Nicolas D B. Roos
semanticscholar +1 more source
When and Why Do Buyers Rate in Online Markets?
Social Science Research Network, 2022 Online ratings play an important role in many markets. We study the often disputed information content of these ratings, by proposing a reduced-form Bayesian model of the typical buyer’s rating decision.
Xiang Hui, T. Klein, K. Stahl
semanticscholar +1 more source
Hub and Spoke Cartels: Theory and Evidence from the Grocery Industry
Social Science Research Network, 2021 Numerous recently uncovered cartels operated along the supply chain, with firms at one end facilitating collusion at the other—hub-and-spoke arrangements.
R. Clark +2 more
semanticscholar +1 more source
Complementary Bidding and the Collusive Arrangement: Evidence from an Antitrust Investigation
Social Science Research NetworkClustered bids and a missing mass of nearly tied bids have both been proposed as markers of collusion. We present causal empirical evidence from an actual procurement cartel that bidding involves both clustering and a gap around the winning bid.
R. Clark +2 more
semanticscholar +1 more source